IASB will hold public forums on changes to IAS 32 and 39

19 Dec 2002

The IASB has announced that the comments received on its Proposed Amendments to IAS 32 and IAS 39 (Financial Instruments) "have represented a wide range of opinion and raised numerous questions".

Consequently, the IASB will hold a series of public roundtable forums to discuss the proposed amendments with those who provided comments on the proposals. The forums will begin with the IASB's Standards Advisory Council on 24-25 February 2003 and continue, during the week of 10 March 2003, with other respondents. The IASB decided to host roundtable discussions following their review of more than 150 comment letters regarding the proposals. Click for IASB Press Release (PDF 17k).

Impact of IASB's business combinations proposals in Australia

18 Dec 2002

The Australian Accounting Standards Board has published exposure drafts on business combinations identical to those issued by the IASB earlier this month.

Proposal to require IFRS for listed companies in New Zealand

18 Dec 2002

New Zealand's Accounting Standards Review Board (ASRB) – the government appointed body that approves accounting standards – has announced that it is recommending to government that listed issuers be required to comply with International Financial Reporting Standards by 2007. They would have the option to adopt IFRS earlier, say by 2005. The ASRB also reaffirmed its policy of aiming for a single set of standards to apply to both the private and public sectors.

The ASRB is currently consulting with government, the stock exchange, the Securities Commission, the Office of the Auditor General, and others on their decision. Australia has also announced a plan to move to IFRS (by 2005), and ASRB is working with Australia regarding the transitional issues. Click for ICANZ Press Release (PDF 49k).

New Journal of International Accounting Research

18 Dec 2002

The International Section of the American Accounting Association has published the inaugural edition of its new annual journal, The Journal of International Accounting Research.

The journal aims to publish articles that increase understanding of the development and use of international accounting and reporting practices or attempt to improve extant practices. International accounting is broadly interpreted to include the reporting of international economic transactions; the study of differences among practices across countries; the study of interesting institutional and cultural factors that shape practices in a single country but have international implications; and the effect of international accounting practices on users. Click for More Information (PDF 19k). Click here to go to American Accounting Association Website.

Euronext requires disclosure of effect of IFRS by mid-2004

17 Dec 2002

Euronext (the pan-Europe stock exchange combining the exchanges in Amsterdam, Brussels, Lisbon, and Paris) has published rules for transition to IFRS/IAS by its Next Prime and Next Economy listed companies.

No financial information that complies with IFRS will be required for 2003. However, a company that has not yet adopted IFRS as of the start of 2004 or earlier will be required to disclose, in its second quarter financial statements for 2004 at the latest, information on the effects of applying IFRS on its opening balance sheet of the year 2004 and on its performance. The requirement to publish quarterly reports starting in 2004 is maintained. Click for Euronext Press Release (PDF 28k).

SEC staff presentations at AICPA annual SEC conference

17 Dec 2002

Among the presentations by senior SEC staff people at the AICPA's annual Current SEC Issues conference that are relevant to the international accounting community are these: (PDF 90k), Director of the SEC Division of Enforcement.

New Singapore GAAP update booklet is published

17 Dec 2002

Deloitte & Touche (Singapore) has published the 2002 edition of Changes to Singapore Accounting Standards (SAS).

This 40-page booklet includes:
  • Summaries of the new accounting standards issued in Singapore during 2002.
  • Summaries of the new exposure drafts.
  • Summaries of current IASB projects (expected to become new SAS).
  • List of differences between Singapore Accounting Standards and IAS.
  • Lists of all SAS and Interpretations.
You are welcome to Download the booklet without charge (PDF 270k).

Business combinations ED files are available for downloading

16 Dec 2002

The PDF files for the IASB's Business Combinations Exposure Drafts can now be Downloaded from IASB's website without charge.

The are four documents in all: an ED of a new IFRS that would replace IAS 22; the basis for conclusions; implementation guidance; and a separate ED proposing amendments to IAS 36 and IAS 38. Comments are due by 4 April 2003. Click for our Project Information and Summary of the ED.

Special IASPlus newsletter on business combinations

13 Dec 2002

We have posted a special edition of our newsletter summarising the IASB's recent Exposure draft ED 3, Business Combinations, and related ED proposing significant amendments to IAS 36 and IAS 38. You can (PDF 63k) the newsletter without charge.Key proposals in the EDs: Method of accounting for business combinations. All business combinations covered by the revised standard must use the purchase method.

Uniting (pooling) of interests would no longer be permitted. Therefore, an acquirer must be identified for every business combination within the scope of ED 3. The acquirer is the entity that obtains control of the other combining entities or operations.
  • Indefinite-lived intangible assets. Goodwill and other intangible assets with indefinite useful lives would not be amortised, but tested for impairment annually (or more frequently if there is an indication of impairment). Reversals of impairment losses with respect to goodwill are prohibited.
  • Finite-lived intangible assets. Amortisation continues, plus an impairment test. However, IAS 38's rebuttable presumption of a maximum 20-year life is dropped.
  • Negative goodwill. Any negative goodwill remaining after a reassessment of the identification and measurement of the identifiable net assets acquired should be recognised immediately in the income statement as a gain. This includes negative goodwill implicit in the carrying amount of an equity method investment.
  • Liabilities for terminating or reducing the activities of an acquiree. Costs expected to be incurred as a result of a business combination to restructure the acquired entity's (or acquirer's) activities would be treated as post-combination expenses, unless at the acquisition date, the acquired entity has an existing liability in accordance with IAS 37.
  • Date for measuring the cost of the acquisition. The consideration paid for an entity is measured at the date control passes to the acquirer (or, if control is acquired in stages, at the various earlier dates of exchange).
  • IASB will meet in London next week

    12 Dec 2002

    The IASB will meet at its offices in London on 18-20 December 2002.On its agenda are the following: .

    The IASB will meet at its offices in London on 18-20 December 2002.On its agenda are the following:

    • Amendments to IAS 32 and IAS 39 - analysis of comments received on the exposure draft
    • Financial Activities
    • Reporting Performance
    • Business Combinations - Phase II
    • IFRIC's proposed amendments to SIC 12, Consolidation of SPEs, and other matters arising from the November 2002 IFRIC meeting
    • Convergence - pension issues
    • First-Time Application of IFRSs - analysis of comments received on the exposure draft
    • Convergence - other issues
    • Concepts: Revenue Recognition
    • Improvements Project - continued discussion of comments received on the ED, particularly with respect to: – IAS 1 Presentation of Financial Statements – IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors – IAS 27 Consolidates and Separate Financial Statements – IAS 28 Accounting for Investments in Associates

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